The potential of algae to create new Welsh jobs and absorb carbon dioxide emissions is to be investigated thanks to a grant from the Welsh Assembly Government.

This grant will allow the community interest organisation Merlin Biodevelopments to examine how algae can be used to our advantage by using the by-products of certain renewable energy plants.

Currently, anaerobic digestion plants turn organic waste into bio-gas, a renewable source of energy. These plants are to play a major role in energy production in the coming years. As well as producing clean energy, the plants produce a by-product called 'digestate' that can be used as compost and a liquid fertiliser. The Assembly Government wants to see if extracts from the liquid element of this digestate can be used to grow algae, and potentially create a whole new market.

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Environment, Sustainability & Housing Minister Jane Davidson said: "Investigating the environmental and economic potential of algae is an important step. Algae captures CO2 and thus reduces our carbon emissions. It also has other potential to create jobs that tap into new markets. You can extract bio-fuels from algae that would lessen our reliance on fossil fuels. This is already happening in other parts of the world and we must make sure Wales doesn't miss out. Algae is also used to make the fish food many people feed to their gold fish. The £50,000 we are providing to this project shows our commitment to supporting research and development to benefit the Welsh economy. The findings of this research will be made freely available to those in Wales who want to exploit its potential."

The grant from the Welsh Assembly Government is to be provided to Merlin Bio-developments who have also secured funding via a loan from The Charity Bank.

(CD/JM)